Eight People Charged in $22 Million Stolen Handset Fraud

Eight people have been charged in a fraud where they obtained over USD22 million worth of wireless devices from AT&T and T Mobile without payment.

As part of the scheme, Gabe Beizem, 34, an owner of Got Wireless, also known
as USA Wireless, a former authorized AT&T and T-Mobile dealer that operated
in Brooklyn, obtained dealer access codes for AT&T's and T-Mobile's
online customer databases. Rohan
Stewart, 34, the owner of KP Wireless, an authorized T-Mobile wireless
device dealer operating in West Palm Beach, Florida, also obtained dealer access
codes for T-Mobile's customer database.

Montayne, and others, then assumed the identities of existing customers and
obtained new wireless devices without payment and without the customers'
permission. The stolen phones were then shipped to by FedEx and DHL to the
genuine customer, but the shipments were intercepted by bribing the delivery
staff.

Beckford, Beizem, Davis, and Montayne, and others, allegedly then sold the
fraudulently obtained wireless devices to others. When charges were incurred on
these devices they were billed to existing AT&T and T-Mobile customers'
accounts. When the customers reported or confirmed the fraud on their accounts
to AT&T and T-Mobile, the companies absorbed the losses, which included the
cost of the devices, insurance payments, shipping costs, and wireless service
and other calling charges.

"Identity theft can ruin customers' credit and seriously disrupt their
lives," stated United States Attorney Campbell. "The type of fraud alleged
in the indictment strikes at the very heart of our modern digital economy and
imposes substantial costs on commercial businesses. It is a serious problem that
requires serious action. Those who commit identity theft can expect to be
investigated and prosecuted to the full extent of the law." Mr. Campbell
thanked the New York State Police for their assistance.

Secret Service Special Agent-in-Charge Parr stated, "The results of this
investigation are an example of the strategic partnerships between the Secret
Service, the New York State Police, and our private sector partners. We continue
to prioritize investigative cases, focusing on electronic and financial crimes
which have a significant impact on the community, and deploy cutting edge
technology to pre-empt criminal ingenuity."

If convicted of conspiracy to commit mail fraud and wire fraud, the
defendants each face maximum sentences of 20 years of imprisonment.